Bond price Procter and Gamble’s 4.7% bonds due in 2019 were reported as selling for 104,797. Were the bonds selling at a premium or at a discount? Why is Proctor & Gamble able to sell its bonds at this price?
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Bond price
Procter and Gamble’s 4.7% bonds due in 2019 were reported as selling for 104,797.
Were the bonds selling at a premium or at a discount? Why is Proctor & Gamble able to sell its bonds at this price?
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- On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?Stones Energy Corporation's 7.5% bonds due in 2022 were reported as selling for 82.95. Were the bonds selling at a premium or at a discount? Why is Stone Energy Corporation able to sell its bonds at this price?Assume Lyda Inc. sold bonds with a face value of P500,000 for P530,000. Was the market interest rate equal to or greater than the bonds’ contractual interest rate? What are the financial ratios used to analyze current liabilities and long-term liabilities?
- Stone Energy Corporation’s 7.5% bonds due in 2022 were reported as selling for 82.95. Were the bonds selling at a premium or at a discount? Why is Stone Energy Corporation able to sell its bonds at this price?you had been given the following concerning ABC " Company CALLABLE bonds: Value Stated Rate Market Rate Maturity Interest Date Payment 1/7/2017 100,000 10% 6 5 Years Semiannual Selling Price 117,060 Based on the above given information Answer the following questions: if the company is using the effective interest method 1. if the company pays interest on July 14 and December 31 What is the amount of interest expense that must be presented on the company's income statement for the year 2018 ?· The Answer is: 2. At what value must the company present its bonds payable as 31/12/2018 ? The Answer is 3. If the company called 60 % of its outstanding bonds at 103 on 30/6/2019, then the company must Pay Cash with an amount of For the year 2019 the company must Present interest Expense with value of on income statement, and a of on the income statement asDevin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Вook Date Amount Discount Value Expense $441,068 $444,310 $447,683 $451,190 $454,838 $458,631 $462,577 $466,680 $470,947 $475,385 Discount $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $102,577 $106,680 $110,947 $115,385 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $333,011 $226,331 $115,385 $0 $11,107,760 $11,192,071 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 June 30, 2021 Dec 31, 2021 June 30, 2022 Dec 31, 2022 June 30, 2023 Dec 31, 2023 June 30, 2024 Dec 31, 2024 June 30, 2025 Dec 31, 2025
- Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Вook Date Amount Expense Discount Discount Value June 30, 2021 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $441,068 $444,310 $447,683 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $11,107,760 $11,192,071 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 Dec 31, 2021 June 30, 2022 $451,190 $454,838 $458,631 Dec 31, 2022 June 30, 2023 Dec 31, 2023 $462,577 $466,680 $102,577 $106,680 $333,011 $226,331 June 30, 2024 Dec 31, 2024 $360,000 $360,000 $470,947 $475,385 $110,947 $115,385 June 30, 2025 $115,385 Dec 31, 2025 $0 1. What journal entry will Devin make on June 30, 2022 to record the third interest payment? 2. When the bonds mature on…Determining Selling Prices of Bonds Under Different Interest Assumptions Olay Inc. issues $160,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price of the bonds under the following separate assumptions. Round your answer to the nearest whole number. Do not use negative signs with your answers. d. The bonds pay cash interest semiannually ($6,400) and the market rate of interest on similar bonds is 10%. Answer e. The bonds pay cash interest semiannually ($6,400) and the market rate of interest on similar bonds is 8%. Answer f. The bonds pay cash interest semiannually ($6,400) and the market rate of interest on similar bonds is 6%. AnswerDetermining Selling Prices of Bonds Under Different Interest Assumptions Olay Inc. issues $50,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price of the bonds under the following separate assumptions. • Round your answer to the nearest whole number. • Do not use negative signs with your answers. a. The bonds pay cash interest annually ($4.000) and the market rate of interest on similar bonds is 10%. b. The bonds pay cash interest annually (54.000) and the market rate of interest on similar bonds is 8%. c. The bonds pay cash interest annually ($4.000) and the market rate of interest on similar bonds is 6%. d. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 10%. S e. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 8%, s f. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 6%. %24 47,738 x 50.000 v 52,600…
- Determining Selling Prices of Bonds Under Different Interest Assumptions Olay Inc. issues $160,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price of the bonds under the following separate assumptions. Round your answer to the nearest whole number. Do not use negative signs with your answers. a. The bonds pay cash interest annually ($12,800) and the market rate of interest on similar bonds is 10%. Answer b. The bonds pay cash interest annually ($12,800) and the market rate of interest on similar bonds is 8%. Answer c. The bonds pay cash interest annually ($12,800) and the market rate of interest on similar bonds is 6%. Answer d. The bonds pay cash interest semiannually ($6,400) and the market rate of interest on similar bonds is 10%. Answer e. The bonds pay cash interest semiannually ($6,400) and the market rate of interest on similar bonds is 8%. Answer f. The bonds pay cash interest semiannually ($6,400) and the market rate of…A company sold bonds on January 1, 2021, for $207,913. This price represents a market rate of 9% on bonds that have a face amount of $200,000, have a stated rate of 10%, pay semiannual interest, and mature in 5 years. For what amount would these bonds be recorded when sold?On January 1, 2021, Nell issued 600,000 in non-interest-bearing bonds that mature on January 1, 2041. The bonds pay no interest during the period of time they are outstanding interest rate for borrowing with a similar risk and maturity is 12% and the bonds are priced to yield accordingly. What is interest expense in 2022? a. $0 b. 62,202 c. 7,464 d. 8,360
